Bitcoin News Today: Bitcoin Tethered at $118,000 as Support/Resistance Loom; $118,500 Break Could Drive $120,500 Rally

Bitcoin’s price action has stabilized near critical support and resistance levels, with traders closely watching for signs of a potential upward breakout. The cryptocurrency is currently trading around $118,000, having consolidated within a range defined by a $117,250 support zone and a $118,500 resistance threshold. A breach above the latter could reignite bullish momentum, while a breakdown might trigger further declines [1].

The recent price trajectory reflects a tug-of-war between buyers and sellers. After surging above $119,250 and forming a high of $119,795, Bitcoin has since retreated to the 23.6% Fibonacci retracement level of its recent upward move. This correction has brought the asset back to the $118,000 level, where it is now testing a bearish trend line and the 100-hourly simple moving average. Technical indicators suggest mixed signals: the hourly MACD is losing bullish momentum, while the RSI has dipped below the 50 level, signaling weakening upward pressure [1].

Key resistance levels remain in focus. A sustained close above $118,500 could propel Bitcoin toward $120,500, with further targets at $122,500 and $123,200. Analysts note that a breakout past $120,500 might attract renewed buying interest, particularly if the asset forms a tightening structure in the $120,000 area [2]. Conversely, failure to surpass these levels could lead to renewed selling pressure, with immediate support at $117,250 and $116,600. A breakdown below $114,600 might push the price toward $113,500, raising concerns about bearish sentiment [1].

Market dynamics are further influenced by liquidity conditions. The Bitcoin Stablecoin Supply Ratio (SSR) has shown signs of thinning, indicating reduced stablecoin liquidity in the sector. This trend could prolong consolidation phases and limit upward potential until broader market conditions stabilize [3]. Meanwhile, the cryptocurrency’s behavior has spilled into altcoin markets, with increased trading activity in smaller-cap assets as traders shift focus away from Bitcoin’s sideways movement [5].

Projections from analysts vary. Ali Martinez, a crypto analyst, highlights that Bitcoin’s MVRV pricing bands could support a move toward $130,000 if the $114,000 support level holds firm [4]. However, such outcomes depend on sustained buyer participation and the absence of further slippage in key zones. Others argue that the tightening structure near $120,000 suggests a potential breakout is imminent, though confirmation requires a decisive move beyond the defined range [2].

Historical patterns provide context. Bitcoin has demonstrated a tendency to form higher highs and higher lows during bullish cycles, a trend currently mirrored in its price action between $114,000 and $120,000. A sustained rally above $120,500 could trigger renewed buying pressure, while a descent below $114,000 might reignite bearish scenarios [5].

The cryptocurrency’s recent volatility—spiking above $123,000 earlier this month before consolidating—underscores its sensitivity to macroeconomic factors. While some analysts advocate for patience, others caution that mixed technical signals necessitate caution. The coming weeks will likely determine the next phase of Bitcoin’s trajectory, with both bulls and bears monitoring key levels for decisive movement [7].

Sources:

[1] https://www.newsbtc.com/analysis/btc/bitcoin-price-holds-support-117600/

[2] https://cryptorank.io/news/feed/8eadd-bitcoin-price-prediction-smart-money-steps-in-is-this-the-last-chance-to-buy-before-150k

[3] https://www.mitrade.com/insights/news/live-news/article-3-992934-20250729

[4] https://infomarine.net/en/insight/118-crypto-news/34336-bitcoin-mvrv-pricing-bands-hint-at-$130k,-but-only-if-this-support-holds.html

[5] https://coinpedia.org/price-analysis/top-altcoins-to-hit-new-high-after-bnb-breaks-ath/amp/

[7] https://www.msn.com/en-us/money/savingandinvesting/bitcoin-and-ethereum-surge-here-are-5-set-to-ride-the-wave/ar-AA1JqQhl